Res 23-65 A RESoLUT~ION AUTHORIZING THE ISSUANCE
OF $2,000,000 WATER AND SEWER REVENUE
BONDS, SERIES ~1965, AND PROVIDING FOR
THE RIGHTS, REN~IES AND SECURITY OF
THE HOIDERS OF SAID WATER AND SEWER
REVENUE BONDS, SERIES 1965.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DELP~Y
BEACH, FLORIDA:
ARTICLE I
STATUTORY AUTHORITY, FINDINGS A~D DEFINITIONS
1.01. AUTHORITY FOR THIS RESOL~£ION. This resolution is
adopted pursuant to the provisions of Chapter 184, Florida Statutes,
and other applicable provisions of law.
1.02. FINDINGS. It is hereby found and determined as
follows:
(A) That the City of Delray Beach now owns, operates and
maintains a municipal waterworks plant and system for the supply
and distribution of water within and without said City.
(B) That~the City has heretofore duly issued $1,550,000
Water and Sewer Revenue Refunding Bonds, dated December l, 196~
payable from and secured by a lien on and pledge of the net revenues
derived from the operation of said waterworks plant and system and
the sanitary sewer system of said City~ pursuant to a resolution
heretofore duly adopted on December 12, 1963 (~nich said Bonds were
issued to refund $1,~64,000 Water Revenue Certificates, Series 1957~
dated June l, 1957); that as of now there are outstanding and unpaid
~1,420~000 of said Water and Sewer Revenue Refunding Bonds, dated
December l, 196~.
(C) That the City has heretofore duly issued 4500,000 Wate~·
and Sewer Revenue Bonds, dated December l, 1961, payable from and
secured by a lien on and pledge of the net re~e~ues derived from the
operation of the waterworks plant and. system and the sanitary sewer
system pari pa~Suwith said outstanding Water and Sewer Revenue
funding BOnds, dated December l, 196~, pursuant to a resolution
heretofore duly adopted~on November 6, 1961~ that all of said Water
and Sewer Revenue Bonds, dated December l, 196I, are now outstanding.
(D) That the City has also heretofore duly issued $1,500,000
Water and Sewer Revenue Bonds, Series 1962, dated December l, 1962,
payable from and secured by a lien on and pledge of the net revenues
derived from the operation of the waterworks plant and system and the
sanitary sewer system pari passu with said outstanding Water and Sewer
Revenue Refunding Bonds, dated December l, 196~, and said outstanding
Water and Sewer Revenue Bonds~ dated December l, 1961, pursuant to a
resolution heretofore duly adopted on November 26, 1962;~.that all
of said Water and Sewer Revenue Bonds, Series 1962 are now outstanding.
(E) That it is deemed advisable and in the best economic
interest of the City to construct and acquire additions, extensions
and improvements to the sewer system of said combined waterworks
plant and system and the sanitary sewer system of said City (herein-
after referred to as "Combined Public Utility"), at an estimated cost
of $2,000,000, and to finance the cost thereof by the issuance of
$2,000,000 Water and Sewer Revenue Bonds, Series 1~65, and to pledge
the net revenues of said Combined Public Utility for the payment
thereof on a parity with the other Bonds hereinafter referred to
which are also payable from the net revenues of said Combined Public
Utility.
(F) That pUrsuant to the provisions of Section 4.05 (G)
of the resolution authorizing the outstanding Water and Sewer
Revenue Refunding Bonds, dated December l, 196~, and Section ll of
each of said resolutions authorizing the issuance of the $500,000
Water and Sewer Revenue Bonds, dated December l, 1961, and the
~1,500,000 Water and Sewer Revenue Bonds, Series 1962, dated
December l, 1962, the City may issue obligations on a parity
with said Water and Sewer Revenue Refunding Bonds, dated~December
l, 196B, said Water and Sewer Revenue Bonds, dated December l, 1961
and said Water and Sewer Revenue Bonds, Series 196~, dated December
l, 1~6~, if certain conditions prescribed in said Sections are
satisfied.
(G) That said conditions will be met in that the average
annual net revenues, as adjusted, of said Combined Public Utility
for the two completed fiscal years immediately preceding the issuance
of the bonds herein authorized will have been at least equal to one
and one-half itimes the highest combined~interest and principal
requirements for any succeeding fiscal year on all the Bonds now out-
standing hereinbefore referred to payable from the net revenues of sad~d
Water and~Sewer System and on the Water and Sewer Revenue Bonds, Series
1965, herein authorized to be~issuedo
(H) That the principal of and interest on the Water and
Sewer Revenue Bonds, Series 1965, to be issued pursuant to this
resolution and all the reserve, sinking fund and other payments pro-
vided for herein will be paid solely from the net revenues derived~
from the operation of said Combined Public Utility, and it will newer
be necessary or authorized to levy taxes on any real property in said
City to pay the principal of and interest on the Water and Sewer
Revenue Bonds, Series 1965, to be issued pursuant to this resolutio~
or to make any of the reserve, sinking fund or other payments pro~'~e~
in this resolution and the Water and Sewer Revenue Bonds, Series 1965~
herein authorized to be issued shall not constitute a lien upon said
Combined Public Utility or upon any other property whatsoever of or
in the City of Delray Beach°
1.0~. RESOLUTION TO CONSTITUTE CONTRACT. In consideration
of the acceptance of the Bonds authorized to be issued hereunder by
those who shall hold the same from time to time, this resolution
shall be deemed to be and shall constitute a contract between the
City of DelrayoBeach, Florida, and Such Bondholders, and the
covenants and agreements herein set forth to be performed by said
Cit~'shall be for the equal benefit, protection and security of
the'legal holders of any and~all of such Bonds and the coupons
attached thereto, all of which shall be ~of equal rank and without
preference, priority or distinction of any of the Bonds or coupons
over any other thereof except as expressly provided therein or
herein°
1.04. DEFINITIONS° The following terms Shall have the
following meanings in this resolution unless the.tExt otherwise
expressly requires:
(A) "City" shall mean the City of Delray Beach, Florida.
(B) "Act" shall mean Chapter 184, Florida Statutes.
(C) "Bonds" shall mean the $2,000,000 Water and Sewer
Revenue Bonds, Series 1965, authorized to be issued pursuant to
this resolution, together with any pari passu additionalbonds
hereafter issued in the manner hereinafter provided, and the inter-
est coupons attached to said Bonds°
(D) ,Outstanding1963 Bonds" shall mean theWater and Sewe~',
Revenue,Rel~Aad-%m~'~,r~m~~~e~m~r l, 1~6~, of theCity ~f Delray
Beach, originally issued in the amount of $1,550,000, and now out-
standing in the amomnt of $1,420,000.
(E) "1961 Bonds" shall mean the Water and Sewer Revenue
Bonds of the City of Delray Beach, dated December l, 1961, originally
issued and all ofwhich are now outstanding°
(F) "1962Bonds" shall mean the Water and Sewer Revenue
Bonds, Series 1962, dated December l, 1962, originally issued and
all of which are now outstanding.
(G) "1963 Bond Resolution" shall mean the resolution
adopted by the City Council on D~cember 12, 1963, authorizing the Water
and Sewer Revenue Refunding Bonds, dated December l, 1963.
(H) "1961 Bond ResolUtion'' shall mean the resolution
adopted by the City Council on November 6, 1961, authorizing the
1961 Bonds°
(I) "1962 Bond Resolution" shall mean the resolution
adopted by the City Council on November 26, 1962, authorizing
'the 1962 Bonds. ~
(J) "Parity Bonds~' shall mean all obligatiOnS heretofore
issued which will be on a parity with the Bonds herein authorized
in the manner hereinafter provided.
(K) "First Lien Obligations" shall mean the 1961 Bonds,
the 1962 Bonds, the 1963 Bonds, the Bonds herein authorized and
all obligations which may hereafter be. issued on a parity with the
1961 Bonds, the 1962 Bonds, the 1963 Bonds and the Bonds herein
authorized°
(L) "Holder of Bonds" or "Bondholder", or any similar
term, shall mean any person who shall be the bearer or owner of
any bond or bonds registered to bearer or not registered, or the
registered owner of any'outstanding bond or bonds which shall at
the time be registered other than to bearer, Or of any coupons
representing interest accrued or to accrue on said bonds.
(M) "Water System~' shall mean the complete waterworks
plant and system, within and without the City, now owned by the
City,' or hereafter constructed or acquired, including all improve~
ments, extensions and additions thereto hereafter constructed or
acquired., together with all lands or interest therein, plants,
buildings, machinery, franchises, pipes, fixtures, equipment and
all property, real or personal, tangible or intangible, now or
hereafter owned or used by said City in connection therewith°
(N) "Sewer System" shall mean the complete sanitary
sewer collection, treatment and disposal system of the City as
it now exists and may hereafter be improved and extended consisting
of all real and personal property of every nature owned by the
City and used or useful in the operation thereof whether within or
without the City.
(0) "Combined Public Utility" weans the Water System
and the Sewer System.
(P) "Fiscal Year" shall mean the period commencing on
October i to and including the next succeeding September 90,
(Q) "Water Revenue Certificate Ordinance" shall mean the
ordinance adopted by the City Council on July 5, 1957, authorizing
the 1957 Certificates which were refunded by the 196~ Bonds.
(R) Words importing singular number shall include the
plural number in each case and vice versa, and words importing
persons shall include firms and corporations.
1.05. ESTINATES. It is hereby found and determined that
the estimated average annual gross revenues of the Combined Public
Utility for the years 1965 to 1998, will be not less than $866,?90;
that the net revenues, after deducting the estimated average annual
cost of the operation, maintenance and repair of said Combined Public
Utility in the years 1965 to 1998, will be not less than ~574,970;
and that on the basis of such estimates, the gross~revenues~to be
derived from said Combined Public Utility will be sufficient to pay
all the cost of the operation, maintenance and repair of said Combined
Public Utility, and all debt service on the 1965 Bonds-authorized
herein and all other obligations payable from the revenues of said
Combined Public Utility.
ARTICLE II
2o01o SEWER IMPROV]EMENTS AUTHORIZED. There is here-
by authorized the construction and acquisition of additions,
extensions and improvements to the Sewer S~ystem of the Com-
bined Public Utility of said City, consisting of, but not being
limited to, the construction of extensions of the collection
system and rehabilitation and repairs to the existing collection
system, all substantially in accordance with the plans and
specifications prepared by Russell & Axon, Consulting Engineers
of Daytona Beach, Florida, now on file or to be filed with the
City Clerk, at an estimated cost of Two Million Dollars ($2,000,000).
Such cost shall be deemed to include the cost of the construction
or acquisition of additions, extensions and improvements to maid
se~er System, including the acquisition of any lands or interest
therein and of any fixtures or equipment or properties deemed
necessary or convenient therefor, interest upon the Bonds issued
pursuant to this ordinance prior to the completion ofsuch additions,
extensions and improvements to the extent that the revenues derived
from said Combined Public Utility are insufficient therefor,
engineering and legal expenses, fees for financial services, ex-
penses for estimates of costs and of revenues, expenses for plans,
specifications andsurveys, administrative expenses and such other
expenses as may be necessary or incidental to the financing author-
ized by this resolution, and the cons~ruction or acquisition of the
additions, extensions and improvements to said Sewer System author-
ized by this resolution, and the placing of same in operatio~, and
for the payment of any temporary obligations issued hereafter (but
prior to the issuance of the Bonds authorized hereunder) for the
purposes provided in this resolution°
ARTICLE III
AUTHORIZATION, TERMS, EXECUTION AND
REGISTRATION OF BONDS'
3o01. AUTHORIZATION OF BONDS° Subject and p~rs~ant to
the provisions of this resolution, obligations of the City of Delray
Beach, Florida, robe known as "Water and Sewer Revenue Bonds, Series
1965" are hereby authorized to be issued in the aggregate principal
amount of not exceedingTwo Million Dollars ($2,000,000) for the
purposes of financing the cost of the additions, extensions and improve-
ments to the sewer system of said Water and Sewer System, authorized in
Article II hereof.
3.02. DESCRIPTION OF BONDS° The Bonds shall be dated June
l, 1965; shall be in the denomination of $5,000 each; shall be
numbered from one (1) to four hundred (400) upwards in order of ma-
turity; shall bear interest at a rate or rates not exceeding the
legal rate, payable semi-annually on June i and December i of each
year, and shall mature serially, in numerical order, on June I of
each year, in the years and amounts as follows:
Year Amount Year Amount
1967 $10,000 1983 $45,000
1968 10,000 1984 50,000
1969 10,000 1985 50,000
197o lO,000 1986 5o,000
1971 3O,OOO 1987 50,000
1972 30,000 1988 55,000.
197~ 30,000 1989 55,000
197~ 30,000 1990 60,000
1975 30,000 1991 135,000
1976 35,000 1992 140,000
1977 35,000 1993 70,000
1978 35,000 1994 75,000
1979 4O,000 1995 75,OO0
1980 40,000 1996 80,000
1981 40,fO00 1997 270,000
1982 45,000 ,1998 280,000
The Bonds maturing in the years 1976 to 1998, inclusive,
shall be redeemable prior to maturity~ as a whole, or 'in part, in
inverse ~numeric~l. order, at the option of the City, on j.unel,
.1975, or on any interest payment date thereafter prio~ to maturity,
at a redemption price of par and accrued interest to the date of
redemption, plus the following premiums if called for redemption
at the following times:
3% of the par value thereof if redeemed
on or before December l, 1981;
2%of the par value thereof if redeemed there-
after but on or before December l, 1990;
1% of the par value thereof if redeemed there~
after but prior to maturity.
A notice of such redemption shall be published at least
once at least thirty (30) days p~ior to the date fixed for redemp-
tion in a financial newspaper or Journal published in the City of
New York, New York. Interest shall cease on any of the Bonds duly
called for redemption as provided above on the redemption date if
payment thereof has been duly made or provided for.
Said Bond. s sha~ll be issued in coupon form, shall be payable
with respect to both principal and interestat The Chase Manhattan
Bank, New York City, New York, in lawful money of the United States
of America and shall bear interest from their date, payable in accord-
ance with and upon surrender of the appurtenant interest coupons as
they severally mature.
3°03. (A) EXECUTION OF BONDS AND COUPONS. Said Bonds
shall be executed in the-name of the City by the Mayor, either
manually or with his facsimile signature, and its corporate seal
shall be affixed thereto or lithographed or reproduced thereon and
attested by the City Clerk, either manually or with his facsimile
signature; provided, however, that at least one of said signatures
shall be a manual signature. In case any one or more of the officers
who shall have signed or sealed any of the Bonds shall cease to be
such officer of the City before the Bonds so signed and sealed shall
have been actually sold and delivered, such Bondsmay nevertheless
be sold and delivered as herein provided and may be issued as if the
perso~ who signed or sealed suCh Bonds had not ceased to hold such
office. ~ny Bond may be signed and sealed on behalf of 'the CitY by
such person as at the actual time of the execution of such Bond
shall hold the proper office in the City, although at the date of
such Bonds such person may not have held such office or may not
have been~so authorized.
The coupons to be attached to the Bonds and the validation
certificate on the Bonds Shall he-executed with the faCSimile signa-
ture of the present or any future Mayor and Clerk of said City, and
the City may-adopt and use for that purpose the facsimile signature
of any person who shall have been such Mayor or Clerk at any time on
or after the date of the Bonds, notwithstanding that he may have
ceased robe such Mayor-'~or Clerk at the time when such Bonds shall
be actually sold and delivered.
(B) REGISTRATION AND NEGOTIABILIT~. The Bonds may be
registered at ~he option of the holder as to principal only, or as
to both principal and interest, at the office of the Treasurer of
the City, such registration to be noted on the back of said Bonds
in the space provided therefor. After such registration as to
principal only, or both principal and interest, no transfer of the
Bonds shall be valid unless made at said office by the registered
owner, or by his duly authorized agent or representative and
similarly noted ~n the Bonds, but the Bonds may be discharged from
registration by being in like manner transferred to bearer and
thereupon transferability by delivery shall be restored. At the
option of the holder the Bonds may thereafter again from time to
t~e be registered or transferred,to bearer asbefore. Such
registration as to principal only shall not affect the negotiability
'of the coupons which shall continue to pass by delivery.
The Bonds shall be, and have all the qualities and ~ncld~nts
of negotiable instruments under the law merchant and the Negotiable
Instruments Law of the state of Florida, and each successive holder,
in accepting any of said Bonds or the coupons appertaining.thereto,
shall be conclusively deemed to have agreed that such Bonds shall be,
and have all the c4ualities and incidents o~ negotiable instruments
under the law merchant and the Negotiable Instruments Law of the State
of Florida, and each successive holder shall be conclusively deemed
to have agreed that said Bonds shall be incontestable in the hands
of a bona fide holder for value in the manner provided .hereinafter
in the form of said Bonds.
3.0~.. BONDS MUTILATED, DESTROYED, STOLEN ORLOST. In case
any Bond shall become mutilated or be destroyed, stolen or lost, the
City may 'in its discretion issue and~deliver a new Bond with all un-
matured coupons, if any, so mutilated, destroyed, stolen or lost in
exchange'and substitution for such mutilated Bond, upon aurrender and
cancellation of such mutilated Bond and attached coupons, if any, or
in lieu of and substitution for the Bond and attached coupons, if any,
destroyed~, stolen or lost, and upon the holder furnishing the City
proof of his ownership thereof and satisfactory indemnity and complying
with such other re~sonable regulations and conditions as the City may
prescribe and paying such expenses as the City may incur. Ail Bonds
and coupons so surrendered shall be cancelled by the Clerk and held
for the account of the City. If any such Bond or coupon shall have
matured or be about to mature, instead of issuing a substituted Bond
or coupon, the City may pay the same, upon being indemnified as afore-
said, and if such Bond or coupon be lost, stolen or destroyed, without
surrender thereof,
Any such duplicate Bonds and coupons issued pursuant to this
section shall constitute-original, additional co~tractual obligations
on the part of the City, whether or not the lost, stOlen or destroyed
bonds or coupons be at any time found by anyone, and such duplicate
Bonds and coupons shall be entitled to equal and proportionate benefits
and rights as to lien and source and security for payment from the
net revenues of ~he Water System~ and Sewer System pledged herein,
with all other Bonds and coupons issued hereunder.
3.05. FO~q OF BOND3 Aha, COU~0NS. The text of the Bonds
and, coupons, shallbe of substantially the following tenor, ~ith
such omissions, insertions and variations as may be necessary and
desirable and authorized or permitted by this resolUtion or any sub-
sequent resolution or ord~uance adopted prior to the issuance
thereof~
No. ~NITED STATES OF AMERICA $5,000
STATE OF FLORIDA
CO~Y OF PALM BEACH
CI~"f OF DELRAY BEACH
WATER AND SEWER REVEN~E BOND, SERIES 1965
KNOW AT.L MEN BY THESE PRESENTS that the City of Delray
Beach, in Palm Beach County, Florida, for value received, hereby
promises to pay to the bearer, or if this bond be registered, to
the registered holder as herein provided, on the first day of June,
19 , from the revenues hereinafter mentioned, the principal sum
of
~IVE THOUSAND' DOLLARS
with interest thereon at the rate. of per
centum per annum, payable semi-annually on the first day of June
and the first 'day of December of each year upon the presentation
and surrender of the annexed coupons as they severally fall due.
Both principal of and interest on this bond are payable at the prin-
cipal office of The Chase Manhattan Bank, New 'fork City, New York,
in lawful money of the United States of America.
The bonds of the issue of which this bond is one, maturing
in the years 1976 to 1998, both inclusive, are redeemable prior to
their stated dates of maturity, as a whole, or in part, in inverse
numerical order, at the option of the City on June l, 1975, or on
any interest payment date thereafter prior to maturity, at a redemp~
tion price of par and accrued interest to the date of redemption,
plus the following premiums if called for redemption at the follow-
ing times~.
3% of the par value thereof if redeemed on or
before December l, 1981;
~% of the Dar value thereof if redeemed there-
after but on or before December l, 1990;
1% of the Dar value thereof if redeemed there-
after but prior to maturity°
A notice of any such redemption shall be published at least
once at least ~thirty (~0) days prior to the date fixed for redemption
in a financial newspaper or Journal published in the City of New York,
NeW York. Interest shall cease on any of the bonds duly called for
redemption as provided above on the redemption date if payment thereof
has been dulY made or provided for.
This bond is one of an authorized issue of bonds in the
aggregaZ.e principal amount of not exceeding $2,000,00'0 of like date,
tenor and effect, except as to number, interest rate and date of ma-
turity, issued to provide for the construction and acquisition of
additions, extensions and improvements to the sewer system of the
Water and Sewer System of said City, under the authority of and in
full compliance with the Constitution .and Statutes of the State of
Florida, including particularly Chapter 184, Florida Statutes, and
other applicable provisions of law, and a resolution duly adopted
by the City Council of the City of Delray Beach on ,
1965 (hereinafter called "resolution"), and is subject to all the
terms, and Conditions of said resolution.
This bond and the coupons appertaining thereto are payable
solely from and, together with certain Water and Sewer Revenue Bonds,
dated December 1, 1961, certain Water and Sewer Revenue Bonds, Series
1962, dated December 1, 1962, and certain Water and Sewer Revenue
Refunding Bonds, dated December 1, 1963, of said City, and such obliga-
tions as may hereafter be issued on a parity therewith, secured by
a lien upon and pledge of the net revenues derived from the operation
of the watex~orks plant and system and sewer system of the City of
Delray Beach all in the manner provided in the resolution. This bond
does not constitute an indebtedness of the City of Delray Beach
within the meaning of any constitutional, statutory or charter pro-
vision or limitation, and it is expressly agreed by the holder of
this bond and the coupons appertaining thereto that such holder shall
never hav~ the right to require or compel the exercise of the ad
valorem taxing power of said City for the payment of the principal
of and interest on this bond or the making Of any sinking fund,
reserve or other payments provided for in the resolution.
It is further agreed between the City of Delray Beach and
the holder of this bond that this bond and the obligation evidenced
thereby shall not constitute a lien upon the City's waterworks plant
and system and its sewer system, or any part thereof, or on any other
prOPerty of or in the City of Delray Beach, but shall constitute
a lien only on the net revenues derived from the operation of said
systems, in the manner provided in the resolution.
The City, in the resolution, has covenanted and agreed with
the holders of the Bonds o£ this issue to fix and establish and main-
tain such rates and collect such fees, rentals or other charges for
the services and facilities of saidWaterworks plant and system and
said sewer system, and to revise the same from time to time whenever
necessary, as will always provide funds sufficient to. pay, and out
of said revenues to pay, as the same mature and bec~me due~ the
principal of and interest on said bonds, and all other obligations
ranking on a parity therewith, all reserve or sinking funds or other
payments provided for in the resolution, the necessary expenses of
operating and maintaining said systems, and all other obligations
payable out of the revenues of said waterworks plant and system and
said sewer system, and that such rates, fees, rentals or other charges
shall not be reduced so as to be insufficient t~ provide adequate
funds for such purposes; and said City has entered into certain further
covenants with the holders of the bonds of the issue of which this bond
is one, for the exact terms of which reference is made to the resolu-
tion.
It is hereby certified and recited that all acts, conditions
~!~and things required to exist, to happen and to .be performed precedent
to and in the issuance of this bond, exist, have happened and have
been performed~in regular and due form and time as required by the
Laws and Constitution of the State of Florida applicable thereto, and
that-the issuance of this bond and the issue of bonds of which this
bond is one, does not violate any constitutional, statutory or charter
debt limitations or provisions.
/
This bond and the coupons appertaining hereto, is, and has
all the qualities and incidents of, a negotiable instrument under the
law merchant and the Negotiable Instruments Law of the State of Florida,
and the original holder and each successive holder of this bond, or
of the coupons appertaining~he~eto, shall be conclusively deemed by
his acceptance hereof to have agreed that this bond, and the coupons
appertaining hereto, shall be and have all the qualities and incidents
of negotiable instruments under the law merchant and the Negotiable
Instruments Law of the State of Florida° The original holder and each
successive holder of this bond, and of the coupons appertaining hereto,
shall be conclusively deemed to have agreed and consented to the fol-
lowing terms and conditions:
(a) Title ~ this bond, unless registered as herein prod
vided, and to the annexed interest coupons, may be transferred by
delivery in the manner provided for negotiable instruments payable
to bearer in the law merchant and the Negotiable Instruments Law of
the State of Florida;
(b) Any person in possession of this bond, unless regis-
tered as herein provided, or of the interest coupons hereunto
appertaining, regardless of the manner in which he shall have
acquired possession, is hereby authorized to represent himself as
the absolute owner hereof, and is hereby granted power to transfer
absolute title hereto by delivery hereof to a bona fide purchaser,
that is, to any one who shall purchase the same for value (present
or ,antecedent).without notice of px~or'de'fenses or eqnities or
claims of oMnership enforceable against his transfer2~or; every '
prior take~ or:crier, of this bond, .~tutese...-~egistered' as herei~
provided, and of the interest coupons appertaining hereto, waives
and renounces all of his equities and rights herein in favor of
every such bona fide'purchaser, and every such-.-b0na-..-fide purchaser
shall acquire absolute title hereto and to all rights represented
.hereby; and
(c) The City of Delray Beach, Florida, ~ay .treat the bearer
'of this bond, unless registered' as herein provided, and of the inter-
est.~..icoup~ns hereunto .appertaining,. as the absolute owner hereof for
all p~oses without'being affected by any notice to the contrary.
.. This bo~d ~ay be~ registered as. to principal only, or as
to both principal and interest, in accordance With the provisions
endorsed hereon.
IN ~IT~SS ~REOF said City of Delray Beach, Florida, has
issued this bond and has caused the same to be executed by the ~mnual
or facsimile signature 9f its ~ayor and the Corporate seal of said
City to be affixed hereto or lithographed or reproduced hereon, and
attested by the ~an~al 'or facsimile signature of the City Clerk of
said City, and has caue~ the interest coupons hereto attached to be
executed with the facsimile Signatures of said Mayor an~ said City
Clerk, all as of the first day of June, 1965.
CITY OF, DELRAY BEACH, FLORIDA
(Fom of coo 0N)
On the day of , 19 , the City of
Delray Beach, Florida, will pay to the bearer at the principal office
of The Chase Manhattan Bank, New York City, New York, in lawful money
of the United States of America from the revenues described in the
bond to which this coupon is attached, the sum of
Dollars ($ ), upon presentation
and surrender of this coupon, being interest then due on its Water
and Sewer Revenue Bond, Series 1965, dated June 1, 1965, No. o
CITY OF DELRAY BEACH, FLORIDA
Attest: Nayor
.... Cltk-C,le 'k .........
(To be inserted in coup°ns .maturing after first callable date on
callable bonds" ~ "unl~S~ the bond to which this coUPon 'appertains
has been previously called'for prior redemption and payment .thereof
duly made or provided for".)
(Fo~m of Validation Certificate)
This bond is one of a series of bonds which were validated
and confi~me~ by decree of the Circuit Court of the Fifteenth Judicial
CircUit of the State of Florida, in and for Palm'Beach County, rendered'
on the day of , 1965.
Florida
~ayor, City'"'of D'elray ~each,
Florida
PROVISION FOR REGISTRATION
This bond may be registered in the name of the holder on
the books to be kept by the City Treasurer, as Registrar, or such
other Registrar~as may hereafter be duly appointed, as to principal
only, such registration being noted hereon by such Registrar, in the
registration blank below, afte~ which no transfer shall be valid un-
'less made on said books by the registered holder or attorney duly
authorized and similarly noted in the registration blank below, but
it may be dischargedfrom registration by being transferred to bearer,
after which it shall be transferable by delivery, but it may be again
registered as before. The registration of this bond as to principal
shall not restrain the negotiability of the coupons by delivery merely,
but the coupons may be surrendered and the interest made payable only
to the registered holder, in which event the Registrar shall note in
the registration blank below that this bond is registered as to
interest as well as principal, and thereafter the interest will be
remitted by mail to the registered holder. With the.consent of the
holder and of the City of Delray Beach, this bond, when converted
into a bond registered as to both principal and interest, may be
reconverted into a coupon bond and again converted into a bond
registered, as to both principal and interest as~_hereinabove provided.
Upon reconversion of this bond, when registered as to principal and
interest, into a coupon bond, coupons representing the interest to
accrue upon the bond to date of maturity shall be attached hereto
by the Registrar and the Registrar shall notein the registration
blank below whether the bond is registered as to principal only or
payable to bearer.
...... Date of : Ih Whose Name : Manner~of. : Signature of
_ Registration : Re6iste~ed : Re$istration : Registrar
wl9~
ARTICLE IV
APPLICATION OF BOND PROCEEDS
$.01. APPLICATION OF BOND PROCEEDS° The proceeds, includ~
ing accrued interest, if any, received from the sale of the Bonds
issued under the provisions of this resolution (herein referred to
as "Bond Proceeds'!) shall be applied by the City forthwith upon the
delivery of and payment for said Bonds as follows:
(A) The accrued interest received on the sale of said
Bonds shall be deposited in the Bond Fund hereinafter crea'ted
and used only for the payment of maturing interest on said Bonds.
(B) The remaining proceeds of said Bonds shall be deposited
in a fund to be known as the "Construction Trust Fund" and shall be
used only to finance the cost of said additions, extensions and
improvements to said Sewer System, as defined herein. Said Construc-
tion Trust Fund shall be deposited in and held by a bank or trust
company, as Trustee, under a Construction Trust Fund AgreemSnt which
shall hereafter be entered into between the City and said bank as
Trustee. Said Construction Trust Fund Agreement shall be in such
form as shall be hereafter determined and shall provide, among other
things, that no expenditures shall be made from said fund, except
for engineering, financial and legal expenses, including fees of
fiscal agents, and the cost of issuance of the Bonds authorized
herein, without the approval of Russell & Axon, Consulting Engineers
for the'City, of Daytona Beach, Florida or any successor Consulting
Engineers hereafter appointed by the City, (hereinafter referred
~o as "Consulting Engineers")o ~
The Citylcovenants that upon the receipt of the proceeds
of the Bonds issued under the provisions of this resolution, it will
to the full extent of its legal powers, proceed to construct and ac-
quire the sewer improvements substantially in accordance, with the
-20-
plans and specifications therefor, heretofore prepared by the Con-
sulting Engineers, and approved by the City, and in conformity
with law and all requirsments of all governmental agencies having
Jurisdiction thereover, and that it will complete such construction
and acquisition with all. expedition practicable.
After the completion of the sewer improvements authorized
by this. resolution, or the reservation of sufficient moneys for the
completion thereof, as certified to by the Consulting Engineers,
the moneys remaining in said Construction Trust Fund shall be deposited
in the reserve portion of the Bond Fund to the extent necessary to make
the amount then on deposit therein equal to the maximum amount
required to be on deposit therein, and any further balance shall
be deposited in the Renewal and Replacement Fund.
Moneys in the Construction Trust Fund may be invested
and reinVested by the City in direct obligations of the United
States of America, or in bank time deposits evidenced by certificate~
of deposit, and secured by collateral of direct obligations of the
United States, maturing not later than twelve months after the date
of purchase thereof.
-21-
ARTICLE V
COVENANTS, SPECIAL FUNDS AND APPLICATION THEREOF
5o01o BONDS NOT TO BE INDEBTEDNESS OF THE CITY. Neither
the Water and Sewer Revenue Bonds, Series 1965, nor coupons shall
be or constitute an indebtedness of the City within the meaning of
any constitutional, statutory or charter debt limitation but shall
be payable solely from the net revenues derived from the operation
of said Water S~stem and Sewer System as herein provided. No holder
or holders of any bond issued hereunder, or of any coupon appertainm
ing thereto, shall ever have the right to compel the exercise of the
ad valorem taxing power of the City, or taxation in any form of any
real property therein to pay said bonds or the interest thereon°
5.02° BONDS SECURED BY PLEDGE OF REVENUES. The payment
of the debt service on all of the Water and Sewer Revenue Bonds,
Series 1965, issued hereunder shall be secured forthwith equally and
ratably by a lien on and pledge of the net revenues derived from
the operation of the Water System and Sewer System, pari passu with
the lien on said net revenues with the holders of said 1961 Bonds,
said 1962 Bonds, and said 1963 Bonds° The net revenues derived from
said Water System and said Sewer System, in an amount sufficient to
pay the principal of and interest on the Bonds herein authorized and
said 1961 Bonds, said 1962 Bonds and said 1963 Bonds, and to make pay-
merits into the reserve and sinking funds and all other payments pro-
vided for in this resolution, are hereby irrevocably pledged to the
payment of the principal of and interest on the Bonds authorized
herein, and other payments provided for herein, as the same become due°
5.03° COVENANTS OF THE CITY. So long as any of the
principal of or interest on the Bonds shall be outstanding and
paid, or until there shall have been set aside in the Bond Fund
herein established, including the reserve therein, a sum sufficient
to pay, when due, the entire principal of the Bonds remaining unpaid,
together with interest accrued and to accrue thereon, the City
covenants with the holders of any and all of the Bonds issued pursuant
to this resolution as follows:
(A) WATER REVENUE FUND AND SEWER REVENUE FUND. That from
and after the issuance of any of the Bonds herein authoriZed the
Combined Public Utility shall continue to be operated on the basis
of a Fiscal Year as defined in Section 1o04 (P) hereof. On that
basis, so long as any of the 1961 Bonds are outstanding, all income
and revenues of every nature derived from the operation of the Water
System sha$1 be set aside into the Revenue Fund created by Section 7
of the Water Revenue Certificate Ordinance (hereinafter sometimes
called the "Water Revenue Fund"), and all income and revenues of
every nature derived from the operation of the Sewer System shall be
set aside into the Sewer Revenue Fund created by Section 7 of the
1961 Bond ResOlutionS prOvid'ed, however, that after retirement of
all of said 1961 Bonds, all revenues of the Combined Public Utility
may be set aside into a separate and special fund to be known as
the "Water and Sewer Revenue Fund" to be held by the DelraY' Beach
National Bank ~f Delray Beach, Florida, or such other bank Or banks
as may be designated from time to time by the Council of the City
of Delray Beach. Any such bank must be a member of the Federal
Deposit Insurance Corporation and all such funds so deposited must
be secured as required for municipal funds under the laws of the
State of Florida. Such fund or funds shall be held by the said
bank or banks in accounts separate from all other city accounts,
to be paid out only for the purposes and under the circumstances
herein provided°
(B) DISPOSITION OF WATER AND SEWER REVENUES° That all
revenues at any time remaining on deposit in the Water Revenue Fund
and the Sewer Revenue Fund or the Water and Sewer Revenue Fund shall
be disposed of only in the following manner and order of priority:
(1) There shall first be paid from the money in the Water
Revenue Fund and the Sewer Revenue Fund or the Water and Sewer Revenue
-23-
.~Fund into a fund, to be held by a bank selected by the City,known
as the0peration and ~aintenance Fund, from time to time as needed,
money $~.uffficient to pay the reasonable and necessary expenses of
operating and maintaining the Combined Public ~tility. Said expenses
are hereby defined as those e~enses reasonably incurred in the normal
· opera-tion of the Combined Public ~tility and do not include the cost
of additions, extensions or other capital improvements, nor any allow-
ance for depreciation':of Capital assets° Money in the Operation and
Maintenance Fund ~hall be expended as needed by the City for such
expenses of operating and maintaining the. Combined Public ~tility,
but to the extent required by the rights of the holders of the out-
standing 1961 Bonds, payments for operating and maintaining each
system shall be made only from the revenues of that system. Joint
e~enses shall be equitably allotted between the two systems as the
Council may determine.
(2) From the money in the Water Revenue.Fund and the Sewer
Revenue Fund or the Water and Sewer Revenue Fund remaining after the
aforementioned payments into the Operation and Maintenance Fund,
there shall be paid into the Bond Fund created by the Water Revenue
Certificate Ordinance such amount of the gross revenues of the
Combined Public Utility in each Fiscal Year as will be fUlly sufficient
to pay all principal of and interest on all First Lien Obligations
falling due in such fiscal year and to accumulate and maintain the
reserve therein as hereinafter required. The Bonds herein authorized
shall be payable from said Bond Fund as to principal and interest
on a parity with said 1961 Bonds, said 1962 Bonds and said 1963 Bonds,
and there shall be paid into the Bond Fund all accrued interest
received from the purchaser UPon delivery of the bonds.
Ail payments into the Bond' Fund shall be ~ad? monthly, on
or before the fifteenth day of each month,..as herein p~ovided by
the Treasurer to the First N~tional Bank of Delray Beach, Delray
Beach, Florida, and shall be held by said bank as a trust account
solely for t~e purpose of paying principal of and interest and re-
demption premiums on all First Lien Obligations. The Bond Fund,
including the reserve, shall be co~tinually secured to the fullest
extent permitted or required by the banking laws of the State of
Florida for the securing of public funds, and shall be irrevocable
and not.withdrawable by anyone for any purpose other than for the
payment of principal of and.interest and redemption premiums on
obligations payabl~ therefrom. It shall be the duty of said bank
on May 15 and November 15 of each year to transmit from the money
in said fund to the paying agent bank such amount as may be needed
for the payment of interest., or principal and interest, falling due
on the next succeeding J~ne i or December l, as the case may be,
(3) In addition to the amounts above required to be paid
into the Bond Fund there shall be paid into the reserve portion of
said fund such amount in each Fiscal Year as will cause the reserve
to be built up, in a period of sixty months to an amount equal to
the largest amount of principal and interest which will be payable
from the Bond Fund in any future year, except the years 1966 to 1968~
inclUsive. The reserve comprising sUch surplus shall be maintained
for the purpose of paying principal and interest payable from the
Bond Fund falling due in any year as to which there would otherwise
be default. If at any time it is necessary to use moneys in said
reserve for the payment of interest or principal, the moneys so used
shall be replaced from the first revenues thereafter received from
the operation of either system not required to be used for maintenance
and operation expenses and for the payment of current principal and
interest, it-being the intention hereof that there shall be maintained
in the Bond Fund, in addition to the amount required for payments
during the current Fiscal Year, an amount sufficient to pay the
largest amount of principal and interest payable.from the Bond Fund
in any future twelve months' period as aforesaid. The money in the
reserve may, in thediscretion of the Council, be invested in direct
obligations of the United States of America, in which event the
obligations so acquired shall be held to the credit of the Bond
Fund, and in the event the mqney in the reserve which has been
so invested shall be needed~for the payment of principal or
imterest, the bank holding the Bond Fund shall, without specific
instructiOns from the City, liquidst~e as many °fth~ obligations
so held a~may be necessary and h~aVe the proceeds of sUCh liquida-
tion aPPlied to the payment of principal and interest.
(4) In addition to the amounts above required to be'paid
into the Bond Fund, there shall be paid in each Fiscal Year into the
Renewal and Replacement Fund created by the Water Revenue Certificate
Ordinance, whenever and to the extent necessary to accumulate and
maintain said fund in the a~ount of $50,000, a sum equivalent to
five per cent of the gross revenues derived from the operation of
both systems in the preceding Fiscal Year. Money in said f~nd shall
be used to pay the cost of making renewals, extensions, replacements
or improvements to the Water System and to the Sewer SYstem when
the making thereof has been recommended by the engineer who is at
the time serving as the consulting engineer for said sYstems. Money
in .said fund shall also be used for the purpose 0f paying principal
or iflteres~,' ~ ~
or both, payable fromtheBond Fund falling due in any
year for the payment of which there is not money in the Bond Fund,
including the reserve therein, and as to which there would otherwise
be default. The money in the Renewal and Replacement Fund may, in
the discretion of the Council, be invested in direct obligations of
the United States of America maturing not later than five years from
date of purchase, in which event the obligations so acquired shall
be held to the credit of said fund. In the event money so invested
is needed for the purposes for which the fund is herein created such
investment shall be liquidated to the extent necessary.
Interest on and profits derived fromthe sale of invest-
ments shall be added to the fund from which said investments were
made. When the amount in the Bond Fu~ad, including the reserve,
and in the Renewal and Replacement Fundshall in the aggregate
be eqUal to the maount of all principal and interest to.~atu~ity
or all principal and interest t° the next redemption date plus
redemption premiums then applicable on all First Lien Obligations
outstanding, further payments into said funds may be discontinued,
and the moneyin said'~fund shall be used for retirement or
redemption,/~f such outsta~dimg obligations.
All money remaining in the Water Revenue Fund and the
Sewer Re?enueFu~d or the Water and sewer Revenue Fumd in each
month in which all installments due during that month and all
previous months (assuming equal monthly installments of payments
required to be made annually) have been paid may be'used to pay
l~e cost of i~provements and extensions to the Combined Public
Utili~ty, to pay principal of and interest and redemption premiums
on jUnior lien obligati°~s issued for.sUch purpose, to retire
First Lien Obligations prior to maturity either through call for
redemption or purchase on the open market at a price no hlg~her
than that at which the sameFirst Lien Obligations may be called
for redemption on the next available red.maption date, or for any
other lawful purpose.
(C) XNS~RAHCE, That so long as any of the Bonds herein
authorized rmaaln outstanding, the City will ~aintain and~.oar~y,
for the benefit of the holders of the Bonds insu~anoe on the
physical properties of the Combined Public Utility of the kinds
and in the amounts normally carried by private companies engaged
in the operation of similar properties° The City will also
carry adequate public liability insurance° All moneys received
for losses under any such insurance policies, except public
liability policies, are hereby pledged by the City of Delray
Beach as security for the obligations payable from the revenues
of the damaged property until and unless such proceeds are paid
out in making good the loss or damage in respect of which such
proceeds are received, either by repairing the property damaged
or replacing the property destroyed,~ and adequate provisions for
making good such loss and damage made within ninety days from the
date 6f the loss. The payment of premiums for all insurance policies
required under the provisions of this section shall be considered
to be maintenance and operation expenses°
'iD) BOOKS AND RECORDS. That the City covenants and agrees
that so long as any of the First Lien Obligations remain outstanding
proper books of record and account will be kept by the City, separate
and apart from all other records and accounts, showing complete and
correct entries of all transactions relating to the Water System and
the Sewer System, and that the holders of any of the First Lien
Obligations, or.any duly authorized agent or agents of such holders,
shall have the right at all reasonable times to inspect all records,
accounts and data relating thereto and to inspect the systems and
all properties comprising the systems. The City further agrees that
it will within sixty days following the close of each Fiscal Year
cause an audit of such books and accounts to be made by an inde-
pendent firm of certified public accountants, showing the receipts
and disbursements for account of each system, and that such audit
will be available for inspection by the holder of any of the first
lien obligations. Each such audit in addition to whatever matters
may be thought proper by the accountant to be included therein,
shall include the following:
1. A statement in detail of the income and expenditures
of each system for such fiscal year.
2. A balance sheet as of the end of such Fiscal Year.
3. The accountant's comment regarding the manner in which
and extent to which the City has carried out the requirements of
this resolution, the Water Revenue certificate Ordinance, the 1961
Resolution, the 1962 Resolution and the 1963 Resolution, and the
accountant's recommendation for any change or improvement in the
operation of either system.
4. A list of the insurance policies in force at the ad
of the fiscal year, setting out as to each policy the amount of
the policy, the risks covered, the name of the insurer and the
expiration date of the policy.
5. The number of metered water customers, the number of
unmetered water customers, if any, the number of hydrants con-
nected to the Water SyStem, and the number of applications for water
service on hand existing at the end of the year°
6. The number of gallons of water shown to have passed
through the master meter of the City during such Fiscal Year, the
number or.gallons of water billed, the estiw~ted number of gallons
of water used for flushing mains and for extinguishing fires, and
the number of gallons of water unaccounted for°
7. The number of properties connected to the Sewer System
at the end of the Fisc&l Year and the number of properties to which
sewer service is available and which are not connected to said
system at the end of the Fiscal Year.
8° The number of applications for sewer service on hand
at the end of the year and the number of applications for such
service received during such Fiscal Year.
9. A statement showing the balances existing at the
beginning and end of the fiscal year in the Bond Fund, including
the ~eserve therein, together with all deposits and withdrawals
made during said Fiscal Year and the monthly deposit requirements
for each such funds during the next succeeding F~scal Year.
10. The total billings for such Fiscal Year and the
average monthly billing per custome~o.
11. Ail schedules of rates and charges imposed for water
and sewer service during the Fiscal Year.
The City agrees to furnish a copy of each such audit ~0
the holder of any of the First Lien Obligations at his request after
the close of each Fiscal Year, and that any such holder shall have
~he'right to discuss with the accountant making the auditthe contents
of the audit and to ask for such additional information as he may
reasonably require. The City further agrees that it will,furnish
the original purchaser of the Bonds~ and all parity bonds and any
holder, upon request, monthly operating reports of both systems
in reasonable detail, and that it will mail each such report to the
las~known address of such purchaser or holder not later than
fif:teen days after the close of the month covered thereby.
(E) RATES. That the City of Del~ay Beach covenants and
agrees with the holder or holders of any of Said. First Lien 0bliga-
tions that it will faithfully and punctually perform all duties
with respect to each system required by the laws of the State of
Florida, and that it will fix and collect sufficient rates and
charges for water and sewer services furnished :b~ ithe Combined Public
Utility and will segregate and apply the income derived therefrom
in the manner provided by this resolutic~ so that said revenues will
at al'ltimes be fully sufficient to operate and maintain the Combined
Public Utility and to pay principal of and interest on said First
~30~
Lien Obligations p~omptly as each falls due and to make available
for purposes Junior in priority to current principal and interest
requirements 'of all First Lien Obligations an amount at least equal
to twenty-five per cent of such requirements. The City of Delray
Beach further'irrevocably covenants~ binds andobligates itself not
to sell, lease, encumber or dispose of either system or any substan-
tial part t~ereof until all of the First Lien Obligations have been
paid in full as-to both principa~ and interest~ and further covenants
and agrees with the holders of said First Lien Obligations to maintain
said Combined Public Utility in good condition and to maintain a
continuous and sufficient supply of water for distribution by the
Water System.
The City further covenants and~agrees that every officer,
agent or employee of the City having custody or control of any of
the moneys derived from the operation of the Combined Public Utility
shall be bonded by a responsible corporate surety in an amount not
less than the greatest amount reasonably anticipated to be within
the custody or control of such officer~ agent or employee at one
time° The premiums on such surety bonds Shall be paid by the City
as reasonable and necessary expense of operation.
(F) BILLS. That the City agrees to submit unit bills
for water and sewer service to each person or firm liable for the
payment of water and sewer charges and not to accept payment for one
type of service only. If any water user shall become delinquent
for more than sixty days in the payment of water or sewer charges~
or both, the City will promptly shut off the supply of water to
such user and will not resume such supply until all delinquent charges
and penalties, including a reconnection charge of not less than $1.50,
have been paid. A user shall be deemed delinquent if he has not
paid the full amount of any bill within thirty days after it shall
have been mailed to him.
(G) ISSUANCE OF PARI PASSU OBLIGATIONS. That all first
lien obligations shall enjoy complete parity of lien on.the revenues
of each system despl~e the fact that any of said Obligations may be
delivered at an earlier date than any other of said obligations. The
City of Delray Beach expressly covenants and agrees that it will
issue no other bonds or obligations of any kind or nature payable
from or enjoying a lien on the revenues of either system prior to
or on a parity with th~ Bonds' herein authorized.
The provisions of the above paragraph are subject to the
exception that if prior to the payment of the Bonds herein author-
ized, it shall be found desirable to refund any First Lien Obligations,
said obligations or any part thereof may be refunded with the consent
of the holders thereof (except that as to matured obligations or
obligations which have been properly called for rsdem~$1on, such
consent shall not be necessary) and the refunding obligati~sao.
issued shall enjoy complete equality of lian.~i~,h the portion of the
obligations which is not refunded, if any there be, and the refund-
tng obligations shall continue to enjoy whatever priority of lien
over subsequent issues may have been enjoyed by the obligations
refunded, provided, however, that if only a portion of the outstand-
ing First Lien Obligations is so refunded~ no refunding obligation
may bear interest at a rate higher or mature at a date earlier than
the obligation refunded thereby without the consent of the holders~
of the unrefunded portion of said First Lien Obligations.
The provisions of the second above paragraph are subject
to the further exception that the City may issue additional obliga-
tions on a parity with the 1961 Bonda, the 1962 Bonds, the 1963 Bonds
and the Bonds herein authorized upon compliance with all terms and
conditions set out for the issuance of such parity obligations in
Section 12 of the Water Revenue Cert~ificate Ordinance.
-32-
~on retirement of all 1961 Bonds, such additional obliga-
tions may be issued if all the following conditions are met:
(a) The averag~ annual net revenues of the Combined Public
Utility for the two completed Fiscal Years immediately preceding
the issuance of the additional obligations must have been equal to
one and one-half times the highest combined interest and principal
requirements for any succeeding Fiscal Year on all First Lien'Obliga-
tions then outstanding and on the obligations s5 proposed to be
issued. "Met revenues" for the purposes of this paragraph and the
other paragraphs of this section shali~be understood to refer to
the gross revenues of the Combined Public ~tility remaining after
there have. been deducted therefrom the reasonable expenses of operat-
ing and maintaining the Combined Public Utility. If during the
aforesaid two completed Fiscal Years rates imposed for services
furnished by all or any part of said Combined Public Utility shall
have been increased the engineer who is serving as the consulting
engineer for the Combined Public'Utility may determinm~fjaeaddl$1onal
net revenues resulting from such rate increase for ~he period it
shall have been in effect and may add to the net revenues determined
as above prescribed seventy-five per cent (75%) of the additional
net revenues which in his opinion, based on such determination, would
have been derived from the operation of the Combined Public Utility
during the part of said two completed Fiscal Years prior to the
making of such rate increase, had such increase been in effect during
such part of said two completed Fiscal Years.
If the average annual net revenues Of the Combined Public
Utility for the two completed Fiscal Years immediately preceding the
issuance of the additional obligations, adjusted as above provided,
shall have been equal to one and one-fifth times the highest combined
interest and principal requirements for any succeeding Fiscal year
of all First Lien Obligations then outstanding and the obligatims
so proposed to be issued, there may also be added to the net revenues
'33-
of the Combined PUblic Utility for the two completed Fiscal Years
immediately preceding~ for purposes of the above computation~ seventy-
five per cent (75%) of the additional net revenues estimated by the
aforesaid engineer to be received by reason of the operation of such
additional facilities during the first two completed Fiscal Years
following the placing,~n operation of the additional facilities to
be acquired with the proceeds of such additional obligations.
If there shall be pledged to the payment of such additional
obligations revenues to be derived by the City from the imposition of
a utilities service tax on the sale or purchase of utility services
in the City (other than the sale or purchase of water or water
services) ther~ may also be added to the net revenues of the Combined
Public Utility for the~two completed Fiscal Years immediately
preceding the issuance of the additional obligations for the purposes
of the second above paragraph the net revenues derived by the City
from the proceeds of such utilities service tax during Said two
Fiscal Years. If only a part of such utilities service tax proceeds
is so pledged~ then there may be added to the aforesaid net revenues
the net revenues derived by the City from the proceeds of the part
of said utiliti&s service tax during said two Fiscal Years which
is to be ~o pledged to the payment of such additional obligations.
(b) The payments required to be made into the Bond Fund
including the reserve therein must be current.
(c) The additional obligations must be payable as to
principal on June i of each year in which principal falls due and
must be payable as to interest on June i and December i of each year°
(d) The proceeds of the additional obligations must be
used solely for the making of improvements, extensions, renewals,
replacements or repairs to th~ Combined Public Utility or refunding
any junior lien obligations hereafter issued for any such purpose
or refunding any or all of the $1,100~O00 Utilities Tax Revenue
Certificates, Series 1962~ which the City has issued for paying the
cost of certain improvements to the Sewer System°
-34-
It is here~y declared that the foregoing conditions show
the intention of thecorresloO~i.~gprovisions of the~Water Revenue
Certificate Ordinance, the 1961 Bond~Resolution the 1962 Bond Resolu-
tion and~the 1963 Bond Resolution to the extent not in conflict with
the ri~ts of the holders of the 1961. Bonds and the 1962 Bonds, said
provisions shall hereafter be so interpreted.
(H) NO COMPETINGFRANCHISE A~'DREL^TED COVENANTS. That
so far as it legally may, the City of Delray Beach covenants and
agrees for the protection and Security of the First Lien 0bliga~tions:
~(a) Th~'t it will not grant a franchise to any competing
Water System or Sewer System to operate in the City of Delray~B~ach
until'all First Lien Obligations have beemn retired.'
(b) That so l°ng as any of the First'Lien~Obligations~re-
main outstanding the City will maintain its corporate identity, will
make no attempt to cause' its corporate existence to be abolished,
and will resist all attempts by other municipal corporations to annex
all or any part of the territory now or:hereafter in the City'or served
by either system.
(c) 'That the'owner, tenant or occupant of each lot o~~
parcel of land within the City of Delray Beach which abuts upon any
street or other pUblic way containing a sanitary sewer, which is served
or which can be served by the sewer. System and upon which lot or parcel
a building shall have been constructed for residential, commercial or
industrial use shall connect such building with such sanitary sewer.
and shall cease to use any other metho~ for the disposal of sewage,
sewage waste or other polluting matter. All such connections shall
be made in accordance with rules and regulations which shall be adopted
from time tp time by'the City Council, which rules and regulations may
provide fOr a charge for making any such connection in, such reasonable'~
amoUnt'as the City Council may fix and establish.
(d) That the City of Delray Beach hereby covenants and
agrees that whenever and to the extent that it may levy any tax
on or measured by the purchase of water distributed or sold by the
Water System, the proceeds of such tax shall be considered part of
the revenues of said system for the purposes of this resolution, and
such proceeds are hereby made'subject' to the same pledge herein made
as other revenues of s~id system.
(I) SALE OF B0~DS. That the Bonds herein authorized shall
be sold in such manner and at such time or times as may hereafter
be determined by resolution of the City Council.
(J) REMEDIES. That in addition to all other rights
enjoyed by the holders of the First Lien Obligations, such holders
shall have the right by mandamus or other appropriate sui~ or action
in any court of competent jurisdiction to enforce his or their rights
against the City of Delray Beach, the governing body thereof, and
any and all officers and agents thereof, including but without limita-
tion, the right to require said City and its governing body to fix
and~collect rates and charges fully adequate to carry out all of the
provisions and agreements in this resolution contained.
(K) NODiFICATION OF RESOLUTION. That the holders of
seventy-five per cent (75%) in principal amount Of the First Lien
Obligations at any time outstanding (not including in any case any
obligations which may then be held or owned by or for the account of
the City, but including such refunding obligations as may be issued
for the purpose of.refunding any First Lien ObligatiOns if such refund~
lng obligations are not owned by the City), shall have the right from
time to time to consent to and approve the adoption by the City of
resolutions or ordinances modifying or amending any of the terms or
provisions contained in this resolution, the 1961 Bond Resolution~ the
1962 Bond Resolution,~the 1963 Bond Resolutio~ or the Water Revenue Certif-
icate Ordinance ink,thee manner and to the extent set out below. This right,
howeve~ Shall not~.be construed to authorize the amendment of the Water
Revenue certificate 0rdinance~ the 1961 Bond Resolutien, the 1962 Bond
Resolution or the 1963 Bond Resolution without obtaining the consent
of 75% in principal amOunt of the holders of the-Bonds outstanding
under said 1961Bo~d.Resolution, said 196~ Bond Resolution and said
1963 Bond Resolution~ No modification hereunder may:
(a) Make any change in the maturity of an~ of the First
Lien Obligations.
(b) Make any change in the rate of interest borne by any
of said obligations.
~(c) Reduce the amount of the principal or redemption prem-
ium payable on any First Lien Obligations.
(d) Modify the terms of payment of principal or oT interest
or of redemption premiums on the First Lien Obligations or any of
them or impose any conditions with respect to such payment.
(e) Affect the rights of the holders of fewer than all
of the First Lien Obligations then outstanding.
Whenever the City shall propose to amend or modify an ordin-
ance or resolution under the provisions of this section, it shall
cause notice of the proposed amendment to be published~one time in a
financial newspaper or Journal published in the City oS New Y°rk,
New York, or Chicago, Illinois. Such notice shall briefly set forth
the nature of-the proposed amendment and shall state that a cop~ of
the proposed amendatory ordinance or resolution is on file in the'
office of the City Clerk~or Ddb~ic inspection.
Whenever at any time within one year from the date of the
publication of said notice there shall be filed in the office .of said
City Clerk an instrument or instruments executed by the holders of at
least seventy-five per cent (75%) in aggregate principal amount of
the First Lien Obligations then outstanding as in this section defined,
which instrument or instruments shall'refer to the proposed amendatory
ordinance or resolution described in said notiCe~and shallspecifically
consent ~o and approve the adoption thereof~ thereupon but not
otherwise, the Council may ad°pt such amendatorY ordinance or resolu~
tion and it shall become effective°
If the holders of at least seventy-five per cent (75%) in
aggregate principal amount of the First Lien Obligations outstanding
as in this section defined~ at the time of the adoption of such
amendatory ordinance or resolution, or the predecessors in title of
such holders~ shall have consented to and approved the .adoptionthereof
as herein proVided~ no holder of any First Lien 0bligation whether
or not such holder shall have consented to or'shall have revoked
any consent as in this section provided, shall have any right or
~interest to object to the adoption of such amendatory ordinance or
resolution or to object to any of the terms or provisions therein
contained or to the operation thereof or to enjoin or restrain the
City from taking any action pursuant to the provisions thereof.
Any consent given by the holder of a First Lien Obligation
pursuant to the provisions of this section shall be irrevocable for
a period of six months from the date of the publication of the notice
above provided for and shall be conclusive and binding upon all
future holders of the same first lien obligation during such period°
Such consent may be revoked at any time after six months from the
date of the publication of such notice by the holder who gave such
consent or by a successor in title by filing notice of such revoca-
tion with the City Clerk, but such revocation shall not be effective
if the holders of seventy-five per cent (75%) in aggregate principal
amount of the first lien obligations outstanding as in'this section
defined have, prior to the attempted revocation, consented to and
approved the amendatory ordinance or resolution referred to in such
revocation.
The fact and date of the execution of any instrument under
the provisions of this section may be proved by the certificate of
any officer in any jurisdiction who by the laws thereof is authorized
-38-
to take acknowledgments of deeds within such J~risdiction, that the
person signing such instrument acknowledged before him the execution
thereof, or may be proved by an affidavit of a witness-to such execu-
tion sworn to before such officer.
· he amount and numbers of the First Lien Obligations held
by any person executing such instrument and the date of his holding
the same may be proved by a certificate executed by any responsible
bank or trust company showing that on the date therein mentioned such
person had on deposit with such bank or trust company the first lien
obligations described in such certificate.
(L) VALIDATION. That John Ross Adams, as attorney for
the City of Delray Beach, is hereby authorized and directed to take
appropriate proceedings in the Circuit Court of the Fifteenth Judicial
Circuit of Florida in and for Palm Beach County for the validation
or.said Bonds, and the Mayor and City Clerk are hereby authorized to
sign any pleadings in such proceedings for and on behalf' of the
Council of the City Of Delray Beach.
'(M) SEVERABILITY OF INVALID PROVISIONS. That if any sec-
tion, paragraph, clause or provision of this resolution shall be' held
to be invalid for any reason, such invalidity shall not affect the
validity or enforceability of any of the remaining provisions hereo'~
(N) REPE~V.~. That all resolutions or orders or parts
thereof in-conflict herewith are to the extent of such conflict hereby
repealed.
Passed and adopted on this the 12th day of July, 1965.
MAYOR
ATTEST:
., , Cit~ Clerk .i/
-39-
Delray Beach, Florida
July 12, 1965
The City Council of the City of Delray BEach, Palm Beach
County, Florida, met in regular public session at the regular
meeting place of the City Council in the City Hall in the City of
Delray Beach at 8:00 o'clock P.M. on July 12, 1965, with Mayor
A1 C. Avery and the following members present:
J. LeROY CROFT
JAMES H. JU~NEY
Absent: JACK L. SAUNDERS
GEORGE TALBOT, JR.
There were also present R. D. Worthing, City Clerk and
Acting City Manager, and John Ross Adams, City Attorney.
After the meeting had been duly called to order by the
Mayor and the minutes of the preceding meeting had been read and
approved the following resolution was introduced in written form
by R. D. Worthing, was read by caption and discussed. Pursuant
to motion made by J. LeROY CROFT and seconded by JAMES H. JURNEY,
the resolution was adopted by the following vote:
AYE: MAYOR AL C. AVERY
J. LeROY CROFT
JAMES H. JURNEY
NAY: none
The resolution is as follows:
(Other business not pertinent to the above appears in the
minutes of the meeting.)
Pursuant to motion duly made and carried the council
adjourned.
/s/ Al C. Avery
M A Y O R
ATTEST:
/s/ R. D. Worthin~ City Clerk
STATE OF FLORIDA
COUNTY OF PALM BEACH
I, HALLIE E. YATES, do hereby certify that I am the duly
qualified and acting City Clerk of the City of Delray Beach, Palm
Beach County, Florida.
I further certify that the above and foregoing constitutes
a true and correct copy of the minutes of a meeting of the City
Council of said city held on July 12, 1965, and of a resolution
adopted at said meeting, as said minutes and resolution are
officially of record in my possession.
IN WITNESS WHEREOF, I have hereunto subscribed my official
signature and impressed hereon the official seal of the City of
Delray Beach this 30th day of October, 1972.
City Clerk ~/